A Microsoft executive in Asia told Reuters on Tuesday that sales will increase at least 50 percent over the next year as demand for smartphones picks up.

Eddie Wu, the software company's managing director of OEM embedded devices in Asia, said the company expects to sell 20 million "units" of its software in the 2007-2008 fiscal year, which ends in June, according to the article. And the company expects to grow at least 50 percent annually over the next two years, he added. Microsoft sold more than 11 million units of its Windows Mobile software in its 2006-2007 fiscal year, which ended June a year ago.

Wu told Reuters that the company is seeing the fastest growth in the Asia-Pacific region, the Middle East, Brazil, Russia, and India. Demand is also strong in Europe and the United States.

Smartphones, which offer e-mail, Web surfing, music, and other Internet services, are growing in popularity. In the first quarter of 2008, sales of smartphones in the U.S. accounted for about 17 percent of all mobile phone sales, the NPD Group reported. This was an increase of 10 percent over the previous year. The increase in smartphone demand comes as sales of cell phones in general are declining in the U.S.

Microsoft has been working hard to cash in on the growing demand for smartphones. Earlier this year, Microsoft released version 6.1 of theWindows Mobile operating system. This version includes an updated browser, which is supposed to make Internet surfing on a mobile phone look and feel like it does on a desktop. The company also has added support for Adobe Systems' Flash.

Windows Mobile 6.1 will be available on a number of manufacturers' phones including HTC, Samsung Electronics, Motorola, and Pantech. And carriers including AT&T, Sprint Nextel, and Alltel have already announced that they will offer the upgrade.

What's more, new phones using Google's Android operating system will soon hit the market. And competitors such as Research In Motion with its BlackBerry devices and Symbian, which is used on Nokia and LG Electronics phones, are also expected to continue to grow.